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We Think InterDigital (NASDAQ:IDCC) Can Stay On Top Of Its Debt
Simply Wall St.
Simply Wall St
,Simply Wall St.•August 19, 2019
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. As with many other companies InterDigital, Inc. (NASDAQ:IDCC) makes use of debt. But should shareholders be worried about its use of debt?
Why Does Debt Bring Risk?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we examine debt levels, we first consider both cash and debt levels, together.
Check out our latest analysis for InterDigital
How Much Debt Does InterDigital Carry?
As you can see below, at the end of June 2019, InterDigital had US$434.4m of debt, up from US$291.9m a year ago. Click the image for more detail. However, its balance sheet shows it holds US$831.2m in cash, so it actually has US$396.8m net cash.
NasdaqGS:IDCC Historical Debt, August 19th 2019
NasdaqGS:IDCC Historical Debt, August 19th 2019
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How Strong Is InterDigital's Balance Sheet?
According to the last reported balance sheet, InterDigital had liabilities of US$242.9m due within 12 months, and liabilities of US$501.9m due beyond 12 months. On the other hand, it had cash of US$831.2m and US$57.2m worth of receivables due within a year. So it can boast US$143.5m more liquid assets than total liabilities.
This surplus suggests that InterDigital has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Succinctly put, InterDigital boasts net cash, so it's fair to say it does not have a heavy debt load!
Shareholders should be aware that InterDigital's EBIT was down 89% last year. If that earnings trend continues then paying off its debt will be about as easy as herding cats on to a roller coaster. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine InterDigital's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. While InterDigital has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. Over the most recent three years, InterDigital recorded free cash flow worth 70% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This free cash flow puts the company in a good position to pay down debt, when appropriate.
Summing up
While we empathize with investors who find debt concerning, you should keep in mind that InterDigital has net cash of US$397m, as well as more liquid assets than liabilities. The cherry on top was that in converted 70% of that EBIT to free cash flow, bringing in US$48m. So we don't have any problem with InterDigital's use of debt. Over time, share prices tend to follow earnings per share, so if you're interested in InterDigital, you may well want to click here to check an interactive graph of its earnings per share history.
https://finance.yahoo.com/news/think-interdigital-nasdaq-idcc-stay-113512304.html
somethin's up? Buyout ? Somebody know's somethin ! ! !
longinvestor: Too many times we have counted chickens before they were hatched.
Remember Mickeybritt's Billions owed by Nokia?
Remember rhw Billions due from Motorola and Ericsson?
How about the engines and transmissions, the calculators with lots of zero's, the 3-5 year targets dropped from $800 million to $600 million to $500 million?
What about the other investments that never panned out?
What about the hype with Hillcrest?
Remember, Wall Street believes in deals signed, not promises of future signings.
I'm sorry but Management has yet to come through with positive signs' only promises and hopes!
IF they feel so strong about deals, let them put the money up front by paying special dividends and not stock buybacks which haven't added anything to shareholder values. Again, SHOW ME THE MONEY !
JMO
longinvestor: I'd rather have a 1.44% yield and a share price of $97 dthan a 2.88% yield and a share price of $48.50 !
jeffree: You got it in the wrong order:
1, Insiders buy shares on open market
2. Then, announce another buyback
3. Raise the dividend
4. Then, announce a special dividend from cash on hand (make it an attractive one of $5.00 per share)
5. Then, announce the beginning of a recurring annual dividend)in addition to the regular quarterly dividend
6. Then, announce a series of new licenses with the chinese companies not currently licensed
7. Then, announce a strategic review of a merger or sale of the company.
all of this before the end of the quarter
I think that would really rocket the stock to all time highs!
JMO
That's why I said 'VALUE'
LOSS OF VALUE IN IDCC ON FRIDAY:
One insider lost $1,084,675
top 10 insiders lost $2,511,822
And Blackrock INC, OUR BIGGEST INSTITUTIONAL HOLDER WITH 3,968,483 SHARES REPORTED AS OF 3-31-19, LOST $25,715,000 ON FRIDAY.
Buy backs don't do it! We are at a 52 week low after all the buy backs this year.
What the company needs is an aggressive dividend program tht will generate interest in holding this stock.
1. raise the quarterly dividend.
2. Pay a substantial special dividend NOW
3. Establish an annual special dividend based on a percentage of earnings.
If th company is so confident in the future, they should put show us with these dividend programs.
JMO
InterDigital Announces Financial Results for Second Quarter 2019
Thu August 1, 2019 8:30 AM
|GlobeNewswire|About: IDCC, TCLRY
New wireless licensing and expansion of business to consumer electronics drive 10% year-over-year growth in recurring revenue
WILMINGTON, Del., Aug. 01, 2019 (GLOBE NEWSWIRE) -- InterDigital, Inc. (IDCC), a mobile and video technology research and development company, today announced results for the second quarter ended June 30, 2019.
Second Quarter 2019 Financial Highlights
Second quarter 2019 recurring revenue was $74.4 million, a 10% increase compared to recurring revenue of $67.5 million in second quarter 2018. The increase reflects the contribution of InterDigital's new consumer electronic licensing program, as well as revenue from agreements signed in the second half of 2018 in the company's mobile device licensing program.
Second quarter 2019 operating expenses were $66.7 million, compared to $53.9 million in second quarter 2018. The increase was primarily driven by $13.2 million in costs related to the acquisition of Technicolor SA's (Euronext Paris:TCH) (OTCQX:TCLRY) patent licensing business and Research and Innovation (R&I) research and development organization. Of those, $5.9 million were either transaction, integration or amortization expenses.
Second quarter 2019 net income1 was $7.7 million, or $0.24 per diluted share compared to net income1 $11.0 million, or $0.31 per diluted share, in second quarter 2018.
From January 1, 2019 through June 30, 2019, the company repurchased 2.5 million shares of common stock under its stock repurchase program for a total cost of $171.3 million, $19.6 million of which is attributable to the repurchase by the company of its common stock in connection with the issuance of the 2024 Notes (as defined below). $96.8 million remains available for repurchase subject to the increase to the buyback authorization in May 2019.
In second quarter 2019, the company recorded $22.7 million of cash used in operating activities, compared to $6.8 million of cash provided in second quarter 2018. The company used $33.4 million of free cash flow2 in second quarter 2019, compared to $0.8 million of free cash flow used in second quarter 2018. These decreases were primarily driven by the timing of cash collections under fixed-fee agreements. Ending cash and short-term investments as of June 30, 2019 totaled $0.8 billion.
In second quarter 2019, the company recognized a tax provision of $5.0 million compared to a tax provision of $1.1 million in second quarter 2018.
“With the completion of the acquisition of Technicolor’s R&I team, InterDigital now has fully integrated research-driven businesses in two of today’s most exciting technology segments, and has become one of the largest pure research and licensing businesses in the world,” said William J. Merritt, President and CEO of InterDigital. “That research and our patent portfolio are perfectly aligned with today’s converged devices and advanced services, and represent what we see as a powerful, significantly de-risked platform for growth going forward.”
Additional Highlights
On June 3, 2019, the company completed a private offering of $400 million in aggregate principal amount of 2.00% Senior Convertible Notes due 2024 (the “2024 Notes”). The net proceeds from the offering were approximately $391.6 million after deducting the initial purchasers’ fees and estimated offering expenses. A portion of the net proceeds from the issuance of the 2024 Notes were used to repurchase $221.1 million in aggregate principal amount of the company’s existing 1.50% senior convertible notes due 2020, and to repurchase $19.6 million in shares of the company’s common stock.
On May 31, 2019, the company completed its acquisition of the R&I research and development organization of Technicolor. The acquisition made the company one of the largest long-term R&D and licensing companies in the world, with approximately 340 engineers worldwide.
Other Income in second quarter 2019 included $8.7 million to record the net impact of a gain resulting from our purchase of Technicolor’s R&I organization and a loss on extinguishment of debt related to our May 2019 repurchase of a portion of our convertible notes.
On July 19, 2019, the company completed the sale of its Hillcrest Laboratories, Inc. business to a subsidiary of CEVA, Inc. As part of the transaction, InterDigital retained substantially all of the patent assets that it acquired in 2016.
nterDigital EPS beats by $0.09, beats on revenue
Aug. 1, 2019 8:33 AM ET|About: InterDigital, Inc. (IDCC)|By: Jignesh Mehta, SA News Editor
InterDigital (NASDAQ:IDCC): Q2 GAAP EPS of $0.24 beats by $0.09.
Revenue of $75.6M (+8.7% Y/Y) beats by $0.1M.
Press Release
Looks like some old rats are abandoning ship and they are looking for new ones !
JMO
JimLur, does Tom Carpenter still follow IDCC?
I thought at one time you were in contact with him and if he still follows IDCC, he might be a good source to pose questions on our behalf about the Hillcrest sale -- ie: why did we sell it and what are the financial ramifications of the transaction (like a bottom line profit or loos on the deal).
I wonder if anyone will ask any questions on this subject and will management just blow it off like any other information.
JMO
InterDigital to Demo Innovative Video Solutions at SIGGRAPH
GlobeNewswire•
July 29, 2019
InterDigital R&I’s innovative digital double and face rig extraction technology to be highlighted by French innovation groups at leading computer graphics conference
WILMINGTON, Del., July 29, 2019 (GLOBE NEWSWIRE) -- InterDigital, Inc. (IDCC), a mobile and video technology research and development company, will be highlighting its innovative digital double and face rig extraction technology at SIGGRAPH, the world’s leading digital conference and exhibition in computer graphics and interactive technologies. The technologies are part of the ground-breaking research by InterDigital’s Research & Innovation unit, and part of the suite of technology research areas acquired from Technicolor in June 2019.
InterDigital R&I’s automated face capture technology, developed in collaboration with the world-renowned Max Planck Institute in Germany, is a production-ready tool that extracts animated face rigs from video, making various types of reworking possible. The digital double technology features a proprietary tool that streamlines 3D facial animation, using photogrammetric capture to create a fully-rigged computer graphics character.
“These technologies represent truly cutting-edge capabilities that will see application in advanced production and eventually extend to a broad range of use cases, including digital avatars, gaming, fashion, and other consumer technologies. The fact that our InterDigital R&I team is at the forefront of these technologies, and the opportunity to highlight them at one of the leading computer graphics conferences, is very exciting,” said Henry Tirri, Chief Technology Officer, InterDigital.
InterDigital R&I was selected by Cap Digital, a European group dedicated to digital and environmental transformation, and Minalogic, a leading innovation hub dedicated to the development of digital technologies. SIGGRAPH takes place from 28th July to 1st August at the Los Angeles Convention Center, and InterDigital R&Is’ demonstration is located at SIGGRAPH’s French Pavilion stand (booths 1111 and 1119).
InterDigital Announces August and September Investor Conference Schedule
GlobeNewswire•
July 29, 2019
WILMINGTON, Del., July 29, 2019 (GLOBE NEWSWIRE) -- InterDigital, Inc. (IDCC), a mobile and video technology research and development company, today announced that the company will be attending the following investor conferences in August and September:
Oppenheimer 22nd Annual Technology, Internet & Communications Conference in Boston, MA on August 6th, 2019.
Jefferies 2019 Semiconductor, Hardware and Communications Infrastructure Summit in Chicago, IL on August 27th, 2019. This event will not be webcast.
4th Annual Dougherty & Company Institutional Investor Conference in Minneapolis, MN on September 5th, 2019.
Sidoti & Company Fall 2019 Conference in NYC, NY on September 25th, 2019.
For more information, please visit the Investors section of the company’s website closer to the event. The Oppenheimer, Dougherty and Sidoti presentations will be webcast live and archived replays of the presentations will also be available following the conferences.
Did someone post about sensors in high-priced cars lately?
I seem to recall reading something about someone seeing IDCC's / Hillcrest's sensors in high-end cars recently. This was not reported by IDCC but rather someone saw something about sensors and Hillcrest.
Anybody remember the post(s) ?
idcc earnings conference is AUGUST 1. We should hear about tyhe deal then.
Wonder how much write off we have on this sale !
Maybe that's why IDCC hasn't commented on it yet.
JMO
This is why I hate share buy-backs:
Textron hits turbulence
FPA Capital Fund’s Top 5 Holdings as of June
Top holding is Denver-based energy company
July 15, 2019 | About: XEC +0% IDCC +0% ALGT +0% ISBC +0% WDC +0% MGLN +0%
According to current portfolio statistics, the FPA Capital Fund (Trades, Portfolio)’s top five holdings as of the June quarter are Cimarex Energy Co. (NYSE:XEC), InterDigital Inc. (NASDAQ:IDCC), Allegiant Travel Co. (NASDAQ:ALGT), Investors Bancorp Inc. (NASDAQ:ISBC) and Western Digital Corp. (NASDAQ:WDC).
InterDigital
The fund owns 189,036 shares of InterDigital, giving the holding 7.20% equity portfolio weight. Shares averaged $66.69 during the second quarter.
The Wilmington, Delaware-based company designs and develops technologies that enable and enhance wireless communications and capabilities. GuruFocus ranks InterDigital’s financial strength 6.2 out of 10: Even though the company’s interest coverage of 0.89 underperforms 91.92% of global competitors, it has a solid Altman Z-score of 3.85 and cash-debt ratio of 2.47, a ratio that outperforms 72.81% of global communication service competitors.
InterDigital Announces Date for Second Quarter 2019 Financial Results
Company Release - 7/15/2019 8:30 AM ET
WILMINGTON, Del., July 15, 2019 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced that the company will release its second quarter 2019 financial results before market open on Thursday, August 1, 2019. InterDigital executives will host a conference call that same day at 10:00 a.m. Eastern Time to discuss the company's financial performance and other company matters.
For a live Internet webcast of the conference call, visit http://www.interdigital.com/ and click on the link to the live webcast on the Investors page. The company encourages participants to take advantage of the Internet option.
For telephone access to the conference, call (800) 239-9838 within the United States or +1 (323) 794-2551 from outside the United States. Please call by 9:50 a.m. ET on August 1st and give the operator conference ID number 1006593.
An Internet replay of the conference call will be available on InterDigital's website in the Investors section. In addition, a telephone replay will be available from 1:00 p.m. ET August 1st through 1:00 p.m. ET August 8th. To access the recorded replay, call +1 (888) 203-1112 or +1 (719) 457-0820 and use the replay code 1006593.
FPA Capital Fund .....During the quarter, the fund beefed up several positions, including MKS Instruments Inc. (NASDAQ:MKSI), Cheesecake Factory Inc. (NASDAQ:CAKE), Valmont Industries Inc. (NYSE:VMI), InterDigital Inc. (NASDAQ:IDCC) and others. It also trimmed its holdings of Western Digital Corp. (NASDAQ:WDC), Avnet Inc. (NASDAQ:AVT) and Frank’s International NV (NYSE:FI), among others.
FPA Capital’s $169 million equity portfolio is composed of 25 stocks. The four largest sectors represented are technology, industrials, consumer cyclical and energy. According to the fund’s website, it underperformed the Russell 2500 in 2018 with a return of -17.61%. The index posted a -10% return.
https://www.gurufocus.com/news/907961/fpa-capital-fund-buys-1-sells-2-in-2nd-quarter/r/caf6fe0e0db70d936033da5461e60141
Probably no income from this venture
Apple Might Scoop Up Thousands of Intel Patents in Pursuit of 5G Modem
Motley Fool
Evan Niu, CFA, The Motley Fool
July 10, 2019
"5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property," Intel (NASDAQ: INTC) CEO Bob Swan said in a statement earlier this year when the company revealed it was exiting the 5G modem business. "We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world."
That news came just hours after Apple (NASDAQ: AAPL) announced its surprise settlement with Qualcomm (NASDAQ: QCOM), a supplier it had spent over two years battling in courts around the world. Last month, Intel kicked off an auction for all those patents, and Apple has emerged as a probable buyer as part of its ongoing effort to develop an in-house 5G modem.
MAYBE THEY CAN SCOOP UP idcc TO ROUND OUT THEIR PORTFOLIO OF 5g MODEM Patents.
(read more...)
https://finance.yahoo.com/news/apple-might-scoop-thousands-intel-211800856.html
InterDigital’s Service-Based Architecture Forms Heart of 5G Media Experiences Competition
GlobeNewswire•July 11, 2019
Gaming and immersive media showcased with public trials on a new 5G network featuring InterDigital’s Service-Based Architecture within FLAME consortium platform
WILMINGTON, Del., July 11, 2019 (GLOBE NEWSWIRE) -- InterDigital, Inc. (IDCC), a mobile and video technology research and development company, today highlights its involvement in the recent “Urban Hacking in 5G” event in Bristol (17th-20th June). The event saw competing creative software teams use 5G technology, specifically mobile edge computing, to design and implement applications that deliver new media experiences within urban settings.
The 5G technology for the event was provided by FLAME – Facility for Large-scale Adaptive Media Experimentation – a European H2020 project, which seeks to transform the user experience by delivering faster access to media and new services through 5G.
InterDigital provided its Service-Based Architecture (SBA) solution at the heart of the FLAME platform. The SBA solution utilizes InterDigital’s FLIPS (Flexible IP Services) technology suite to combine multicast technology with content caching and enables HTTP requests to be flexibly routed on top of an SDN-based transport network. By using FLIPS, latency can be dramatically reduced and throughput increased, resulting in higher resource efficiency and speed of delivery for IP-based services. This SBA solution has recently been included as one of three possible deployment choices for 3GPP’s enhanced SBA in the current Release 16 specification.
The event was designed to create a sustainable Future Media Internet ecosystem through innovation embedded on the 5GUK Test Network infrastructure. Software teams were challenged to create inclusive, participative and entertainment experiences that could potentially be enjoyed by the public.
In addition to providing its SBA solution as part of the FLAME platform during the event, InterDigital also sponsored the event’s awards. First place was awarded to the ‘Aces’ team who proposed an innovative application idea intended to enable a two-way conversation between users and their environment, such as an immersive tourist experience of the city throughout history.
Dirk Trossen, Senior Principal Engineer at InterDigital Europe, said “As mobile network operators begin their 5G deployments, attention now turns to the applications and services that will run on them. Events like these are crucial in validating the underlying infrastructure and demonstrating many new exciting use cases. We are delighted that we were able to play such an important role in this 5G test-bed, and foster innovation for 5G services and applications of the future.”
The use of InterDigital’s SBA in this event follows similar recent deployments. In March, the SBA solution was used in a smart tourism showcase in Bristol in collaboration with 360° Virtual Reality (VR) platform provider Mativision, which saw a group of users experience a guided city tour of a designated site through VR headsets running on 5G technology. It was also used in a trial which saw Belgian broadcaster VRT conduct a media trial with user-generated content for next generation media reporting.
Further information on the event and the work of the FLAME consortium can be found here.
About the FLAME consortium
The FLAME consortium consists of: University of Southampton, InterDigital Europe, Atos Spain, ETH Zurich, Fundacio Privada I2CAT, Internet I Innovacio Digital A Catalunya, i2CAT, Institut Municipal d’Informatica de Barcelona, Martel Innovate, Nextworks, The Walt Disney Company, University of Bristol, and VRT.
Does The InterDigital, Inc. (NASDAQ:IDCC) Share Price Fall With The Market?
Simply Wall St
July 10, 2019
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
If you own shares in InterDigital, Inc. (NASDAQ:IDCC) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
View our latest analysis for InterDigital
What we can learn from IDCC's beta value
As it happens, InterDigital has a five year beta of 0.99. This is fairly close to 1, so the stock has historically shown a somewhat similar level of volatility as the market. If the future looks like the past, we could therefore consider it likely that the stock price will experience share price volatility that is roughly similar to the overall market. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see InterDigital's revenue and earnings in the image below.
How does IDCC's size impact its beta?
InterDigital is a fairly large company. It has a market capitalisation of US$2.1b, which means it is probably on the radar of most investors. We shouldn't be surprised to see a large company like this with a beta value quite close to the market average. Large companies often move roughly in line with the market. In part, that's because there are fewer individual events that are signficant enough to markedly change the value of the stock (compared to small companies, at least).
What this means for you:
Since InterDigital has a beta close to one, it will probably show a positive return when the market is moving up, based on history. If you're trying to generate better returns than the market, it would be worth thinking about other metrics such as cashflows, dividends and revenue growth might be a more useful guide to the future. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as InterDigital’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
Future Outlook: What are well-informed industry analysts predicting for IDCC’s future growth? Take a look at our free research report of analyst consensus for IDCC’s outlook.
Past Track Record:
Has IDCC been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of IDCC's historicals for more clarity.
https://finance.yahoo.com/news/does-interdigital-inc-nasdaq-idcc-101840165.html
InterDigital Joins 5GROWTH Project to Advance 5G Solutions for Vertical Industries
InterDigital will contribute advanced technology platforms and lead the standardization activity in 5G-PPP 5GROWTH project
Company Release - 7/3/2019 4:00 AM ET
WILMINGTON, Del., July 03, 2019 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced its participation in the 5GROWTH project. Part of the third phase of the H2020 5G Infrastructure Public Private Partnership (5G-PPP) initiative, 5GROWTH is aimed at empowering vertical industries with automated and intelligent 5G solutions.
5GROWTH aims to use field trials to validate and optimize the performance of 5G systems deployed on the premises of vertical industries – including Industry 4.0, transport and energy – using automation and Artificial Intelligence (AI)-driven solutions.
InterDigital will contribute to the deployment and validation of 5G technologies for the Industry 4.0 pilot use cases, combining latency-sensitive mission critical automation with bandwidth-intensive video applications over 5G. InterDigital will also contribute software-defined virtualized platforms for distributed edge and fog computing. These solutions were originally developed as part of the EU-Taiwan 5G-CORAL initiative, which was launched in September 2017 and targets a data-driven distributed services platform across the edge and fog for various applications, including immersive 360o video and remote robot navigation. In addition, InterDigital will lead the standardization advisory committee set up in 5GROWTH to oversee the overall standardization dissemination into key standard development organizations such as 3GPP, IETF, and ETSI.
“Collaboration is critical to the validation and evolution of 5G, in particular to the support of vertical industry use cases. To unlock 5G’s full potential, projects such as 5GROWTH are essential, as the skillset and expertise contributed by each consortium member, including vertical industry stakeholders, significantly advances overall progression,” said Alain Mourad, Director of Engineering at InterDigital. “We are delighted to be contributing to 5GROWTH as it underpins one of our biggest focus areas for 2019 – 5G use cases – and builds on our recent 5G success.”
Launched in June 2019, 5GROWTH will begin activity with nine field trials in the industry 4.0, transport and energy sectors that will be conducted on four vertical-owned sites located in Spain, Italy and Portugal. The project is expected to run for two and a half years until the end of 2021.
5GROWTH is led by a consortium of 21 partners from seven European countries, they include: global vendors (Ericsson, InterDigital, NEC, Nokia), operators (Altice, Telecom Italia, Telefonica), vertical industries (COMAU, EFACEC, INNOVALIA), SMEs (Mirantis, Nextworks, Telcaria), and research institutes and universities (CTTC, Instituto de Telecomunicações, National and Kapodistrian University of Athens, Politecnico di Torino University, Scuola Superiore Sant'Anna and University Carlos III of Madrid). The project received a grant of €14.1M from the European Commission.
5GROWTH is part of H2020 5G-PPP, a joint initiative between the European Commission and European ICT industry which aims to deliver solutions, architectures, technologies and standards for the next generation of communication infrastructures of the coming decade.
jeffree so you are saying that only 18,000 shares traded from 'retail' transactions?
felix7, They did take a few questions at the Webcast Annual Meeting; mine was one of them about a special dividend.
They seem to have a generic non committal response to anything asked, so you don't really get a real yes or no answer to any questions asked.
If we could only ask questions at the quarterly conference calls on earnings, it would be better, since our analysts don't ask anything we would like answers to.
JMO
my3sons87: I don't understand why QCOM / APPl amd other litigants not involved with IDCC get resolved what appears to be 'quickly' while our cases drag on and on and on!
Are we wiomps in trying to get through the legal system or are others much better and knowledgeable then our legal representatives in how to get results quicker?
Curious minds want to know!
Here’s What Hedge Funds Think About InterDigital, Inc. (IDCC)
Reymerlyn Martin, Insider Monkey June 24, 2019
How do we determine whether InterDigital, Inc. (NASDAQ:IDCC) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but data shows that their consensus long positions have historically outperformed the market when we adjust for known risk factors.
InterDigital, Inc. (NASDAQ:IDCC) was in 16 hedge funds' portfolios at the end of the first quarter of 2019. IDCC shareholders have witnessed a decrease in enthusiasm from smart money in recent months. There were 21 hedge funds in our database with IDCC positions at the end of the previous quarter. Our calculations also showed that IDCC isn't among the 30 most popular stocks among hedge funds.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
John Overdeck of Two Sigma
John Overdeck of Two Sigma
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We're going to view the new hedge fund action regarding InterDigital, Inc. (NASDAQ:IDCC).
Hedge fund activity in InterDigital, Inc. (NASDAQ:IDCC)
At the end of the first quarter, a total of 16 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -24% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards IDCC over the last 15 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
IDCC_jun2019
IDCC_jun2019
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According to Insider Monkey's hedge fund database, Jim Simons's Renaissance Technologies has the number one position in InterDigital, Inc. (NASDAQ:IDCC), worth close to $73.5 million, comprising 0.1% of its total 13F portfolio. Coming in second is D. E. Shaw of D E Shaw, with a $43.9 million position; 0.1% of its 13F portfolio is allocated to the company. Other peers that hold long positions consist of John Overdeck and David Siegel's Two Sigma Advisors, Robert Rodriguez and Steven Romick's First Pacific Advisors LLC and Noam Gottesman's GLG Partners.
Since InterDigital, Inc. (NASDAQ:IDCC) has faced a decline in interest from the smart money, logic holds that there lies a certain "tier" of hedge funds who were dropping their positions entirely last quarter. Intriguingly, Paul Marshall and Ian Wace's Marshall Wace LLP sold off the biggest stake of all the hedgies monitored by Insider Monkey, comprising an estimated $3 million in stock, and Matthew Tewksbury's Stevens Capital Management was right behind this move, as the fund dropped about $2.2 million worth. These moves are important to note, as total hedge fund interest was cut by 5 funds last quarter.
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as InterDigital, Inc. (NASDAQ:IDCC) but similarly valued. These stocks are Mantech International Corp (NASDAQ:MANT), Lithia Motors Inc (NYSE:LAD), GCP Applied Technologies Inc. (NYSE:GCP), and Golar LNG Limited (NASDAQ:GLNG). All of these stocks' market caps are similar to IDCC's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MANT,12,16915,2 LAD,17,536544,-3 GCP,26,539333,10 GLNG,28,423133,-4 Average,20.75,378981,1.25 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 20.75 hedge funds with bullish positions and the average amount invested in these stocks was $379 million. That figure was $173 million in IDCC's case. Golar LNG Limited (NASDAQ:GLNG) is the most popular stock in this table. On the other hand Mantech International Corp (NASDAQ:MANT) is the least popular one with only 12 bullish hedge fund positions. InterDigital, Inc. (NASDAQ:IDCC) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately IDCC wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); IDCC investors were disappointed as the stock returned -2.7% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published at Insider Monkey.
squing: where you going? New board ?
InterDigital Takes Part in Wireless Technology Demo at EUCNC
Zacks Equity Research
June 20, 2019
InterDigital, Inc. IDCC has announced its participation in two significant wireless technology demonstrations at the European Conference on Network and Communications (EUCNC) this week. The company continues to play a crucial role by contributing wireless technology intellectual property and coordination.
It intends to exhibit specific application for 5G network resource slicing to meet Ultra-reliable low latency communication and enhanced Mobile Broadband goals, and ultra-high throughput encoder and decoder solutions for various use cases beyond 5G.
InterDigital’s commitment toward licensing its broad portfolio of technologies to wireless terminal equipment makers, which allows it to expand its core market capability, is laudable. The company’s global footprint, diversified product portfolio and ability to penetrate in different markets instill optimism.
InterDigital aims to enhance its licensing revenue base by adding licensees and expanding into adjacent technology areas that align with its intellectual property position. In the first demo, the wireless R&D company plans to display how the H2020 5G-CORAL architecture — a distributed and virtualized computing hierarchy — can be used to support simultaneous 5G slices for a remote robotic control and actuation application, based on adaptive 360-degree video technology.
The company is optimizing its strength in core wireless licensing business. It remains poised to benefit from future growth opportunities, fueled by the 5G rollout. In the second demo, the EU EPIC consortium, — consisting of eight partners from seven different countries (Austria, Belgium, France, Germany, Sweden, Turkey and United Kingdom) — will highlight its progress in solving the ultra-high throughput encoder and decoder challenges for beyond 5G wireless systems.
Moreover, in November 2018, InterDigital and other members of the 5G-CORAL consortium conducted their first 5G trial at Global Mall Nangang Station Store in Taipei, Taiwan. The trial was substantial in demonstrating how 5G can effectively work across a modern network deployment. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas by leveraging its R&D capabilities, technological knowhow and rich industry experience.
InterDigital has long-term EPS growth expectation of 15%. It remains committed to its objective of expanding revenue sources while controlling expenses. The stock has lost 23.9% against the industry’s rise of 12.1% in the past year. Nevertheless, management provided healthy revenue guidance for second-quarter 2019, with an expectation of $73-$77 million.
Could InterDigital, Inc.'s (NASDAQ:IDCC) Investor Composition Influence The Stock Price?
Simply Wall St.•June 20, 2019
The big shareholder groups in InterDigital, Inc. (NASDAQ:IDCC) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.
InterDigital has a market capitalization of US$2.0b, so we would expect some institutional investors to have noticed the stock. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about IDCC.
View our latest analysis for InterDigital
NasdaqGS:IDCC Ownership Summary, June 20th 2019
What Does The Institutional Ownership Tell Us About InterDigital?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors own 78% of InterDigital. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of InterDigital, (below). Of course, keep in mind that there are other factors to consider, too.
NasdaqGS:IDCC Income Statement, June 20th 2019
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in InterDigital. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of InterDigital
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
I can report that insiders do own shares in InterDigital, Inc.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around US$29m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.
General Public Ownership
With a 21% ownership, the general public have some degree of sway over IDCC. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
thanks, I had to reconnect to the website.
Anyone linked into the annual meeting?
I HWe no muaix
STILL TIME TO CAST YOUR VOTES ONLINE.
LOOK at the cuirrent share price (close to the 52-week low).
LOOK at the NEW licenses they have signed
LOOK at the performance to their goals.
LOOK at the promises made and not achieved.
THEN, CAST YOUR BALLOTS. VOTE based on the answers to those questions.
QUESTION ON VIRTUAL ANNUAL MEETING
In the past, we were able to email questions for the annual meeting. I see no reference allowing shareholders to ask questions at this meeting.
Has InterDigital found a way to hold an annual meeting without responding to questions from shareholders? This sucks if they have !
ANYONE KNOW ANYTHING MORE ?
5G for Connected Cities Predicted to Generate US$17 Trillion by 2035, Reveals ABI Research
GlobeNewswire• June 7, 2019
5G connected cities services set to play important role in economic growth
WILMINGTON, Del., June 07, 2019 (GLOBE NEWSWIRE) -- 5G will generate trillions of dollars in direct, indirect contributions and productivity gains, according to a new study conducted by ABI Research and commissioned by InterDigital, Inc. (IDCC), a mobile technology research and development company. The study, which examined the growth opportunities for next-generation wireless technologies in urban environments, also revealed how 5G would underpin future vertical services and spur the proliferation of connected cities.
In the new study entitled, ‘5G urban deployment: debunking the capex myth and unlocking new growth’, ABI Research highlighted increased revenue opportunities through 2028 in three separate areas as a result of 5G:
US$2.4 trillion in direct contributions: mostly driven by end-user subscriptions for connectivity services. This compares with US$1.1 trillion with 4G.
US$866 billion in indirect contributions: these include increases in the supply chain from devices, infrastructure, applications, advertising and other products or services. This compares with US$500 billion in 2018 on 4G.
US$3.2 trillion in productivity gains: these refer to better workforce efficiency due to the availability of connectivity throughout cities.
The survey particularly highlights the role of connected cities in the US$17 trillion in economic growth 5G is expected to generate by 2035. According to the findings, mobile operators should take bold steps to deploy 5G mobile broadband connectivity more aggressively in cities over the coming years. The study also highlights how the introduction of 5G in urban areas can create a new wave of enterprise vertical use cases that will redefine consumer lifestyles and enterprise operations in cities. The dense population of urban areas will allow mobile operators to better monetize new 5G services without massive investment or a long ROI cycle.
Early commercial 5G deployments have already been announced, with examples across the globe in the United States, China, Japan, South Korea, and the United Kingdom, supported by infrastructure vendors that have started to ship 5G-capable network equipment. The first 5G-related use cases will be fueled by enhanced Mobile Broadband (eMBB), but advanced and use-case enabling 5G features, such as Ultra-Reliable Low-Latency Communications (URLLC) and Massive Machine Type Communications (MMTC) will start to appear as early as 2020. A number of technologies are contributing to this development, including private cellular, millimeter wave (mmWave), small cells, fixed wireless access, and telco cloud/edge.
“We expect 5G deployment to begin to place huge pressures on mobile operators over the next couple of years as they look to compete to capitalize on its revenue potential,” said Henry Tirri, CTO, at InterDigital. “Many are trying to understand how they will monetize this next generation of wireless technology, and most importantly, how they’ll deliver ROI from it. But while there may still be several questions and doubts surrounding 5G monetization, these findings clearly demonstrate the growth opportunities that 5G is set to bring about. While CAPEX and OPEX investments will be high, it is evident that 5G technology will radically change our ability to deliver new and innovative consumer and enterprise services, and help dictate the trajectory of our future global economy.”
Commenting on the findings, analyst Dimitris Mavrakis from ABI Research said: “We have reached a critical point today where our global economy is heavily reliant on our ability to deliver new technological services. 5G has the potential to completely change our every day lives, but only if mobile service providers can roll out 5G in a way that makes economical and logical sense – that is, to start with mobile broadband connectivity deployments in urban areas to create the right use cases that will justify investments in CAPEX and OPEX.”
The full whitepaper is available to download here: https://idcc.me/2wvWST7
NOW WHAT THE HECK IS GOING ON?
InterDigital Announces Proposed Private Offering of $350 Million of Senior Convertible Notes
Company Release - 5/29/2019 7:00 AM ET
WILMINGTON, Del., May 29, 2019 (GLOBE NEWSWIRE) -- InterDigital, Inc. ("InterDigital") (Nasdaq:IDCC) announced that it intends to offer, subject to market and other conditions, $350 million aggregate principal amount of Senior Convertible Notes due 2024 in a private offering. The notes will be offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Act"). InterDigital also expects to grant to the initial purchasers of the notes a 13-day option to purchase up to an additional $50 million aggregate principal amount of notes, solely to cover over-allotments, if any.
The notes will pay interest semi-annually in cash on June 1 and December 1 and will mature on June 1, 2024. Prior to March 1, 2024, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day preceding the maturity date. Conversions of the notes will be settled in cash, shares of InterDigital's common stock or a combination thereof, at InterDigital's election. The interest rate, the conversion rate and certain other terms of the notes will be determined by negotiations between InterDigital and the initial purchasers of the notes.
InterDigital expects to use a portion of the net proceeds from the offering of the notes, and the proceeds from the sale of the warrants described below, to fund the cost of the convertible note hedge transactions described below. The remaining net proceeds from the offering of the notes will be used for the repurchase of a portion of InterDigital’s existing 1.50% senior convertible notes due 2020 (the “2020 notes”) in privately negotiated transactions concurrently with the offering of the notes, the repurchase of up to $50 million of shares of InterDigital common stock from institutional investors through one of the initial purchasers or its affiliate, as InterDigital's agent, concurrently with the pricing of the offering of the notes, and for general corporate purposes, which may include, among other things, the repurchase, redemption or other retirement of any remaining 2020 notes.
In connection with the pricing of the notes, InterDigital expects to enter into one or more privately negotiated convertible note hedge transactions with certain financial institutions, which may include one or more of the initial purchasers of the notes or their affiliates (the "hedge counterparties"). The convertible note hedge transactions collectively are expected to cover, subject to customary anti-dilution adjustments, the aggregate number of shares of InterDigital common stock that will initially underlie the notes. InterDigital also expects to enter into one or more privately negotiated warrant transactions with the hedge counterparties whereby InterDigital will sell to the hedge counterparties warrants relating to the same number of shares of InterDigital common stock, with such number of shares subject to customary anti-dilution adjustments. In addition, if the initial purchasers exercise their over-allotment option to purchase additional notes, InterDigital expects to enter into one or more additional warrant transactions and to use a portion of the proceeds from the sale of the additional notes and warrant transactions to enter into additional convertible note hedge transactions. The convertible note hedge transactions are expected to reduce the potential dilution with respect to InterDigital common stock and/or offset any potential cash payments InterDigital is required to make in excess of the principal amount of converted notes, as the case may be, upon any conversion of the notes in the event that the market price per share of InterDigital common stock exceeds the strike price of the convertible note hedge transactions. However, the warrant transactions will have a dilutive effect to the extent that the market price per share of InterDigital common stock exceeds the applicable strike price of the warrants on any expiration date of the warrants.
In connection with the contemplated repurchase of the 2020 notes, InterDigital expects to enter into agreements with the dealers party to certain convertible note hedge transactions related to such 2020 notes (the “Existing Note Hedges”) to unwind a corresponding portion of the Existing Note Hedges. InterDigital also expects to enter into agreements with such dealer counterparties to unwind certain warrant transactions sold at the time of issuance of the 2020 notes (the “Existing Warrants”).
In connection with establishing their initial hedge of the convertible note hedge transactions and warrant transactions and concurrently with, or shortly after, the pricing of the notes, the hedge counterparties and/or their affiliates expect to purchase InterDigital common stock in open market transactions and/or privately negotiated transactions and/or enter into various cash-settled derivative transactions with respect to InterDigital common stock concurrently with, or shortly after, the pricing of the notes. In connection with the unwind of the Existing Note Hedges and the Existing Warrants, InterDigital expects the counterparties thereto and/or their affiliates may reduce their existing hedge positions, which may partially offset the purchases or cash-settled derivatives transactions described in the foregoing sentence. In addition, the hedge counterparties and/or their affiliates may modify their hedge positions following the pricing of the notes by entering into or unwinding various derivative transactions with respect to InterDigital common stock and/or by purchasing or selling InterDigital common stock in open market transactions and/or privately negotiated transactions following the pricing of the notes from time to time (and are likely to do so during any conversion period related to a conversion of notes). Any of these hedging activities could also increase (or reduce the size of any decrease in) the market price of InterDigital common stock.
The notes and the shares of InterDigital common stock issuable upon conversion, if any, have not been registered under the Act or applicable state securities laws and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Act and applicable state securities laws.